Wed, May 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Emerging markets continue to offer opportunity, and a useful approach to economics for developed markets - Van Eck Global

Wednesday, June 09, 2010

From Kirsten Bischoff, Opalesque New York:

"This month [May], we played a lot on the short side," says Eric Fine, former head of emerging markets research and founder of emerging markets prop trading at Morgan Stanley. He is current Portfolio Manager of the emerging markets macro G-175 Strategy at Van Eck Absolute Return Advisers Corp. Van Eck manages $22 billion, including $3 billion in emerging market focused funds.

For Fine and his team, focusing on putting emerging market asset prices in the right valuation context to each other and to developed markets has been a big driver behind shifting the portfolio to capture performance in both upward and downward moves.

Typically, the G175 strategy focuses on fundamentals, but when technical moves are in play, the most crowded moves (typically those based on fundamental analysis) are often the ones that suffer the most. Making money every month is the focus, therefore, positions that the team sees priced well and that are cheap are left on the table until markets stabilize. "Right now the most bullish we want to be is no risk on," he says.

This has meant collapsing the portfolio's investment horizon from 3-12 months to mere hours. "For May, we pretty much had a 24 hour investment horizon," Fine says. "Shorts can really punch you in the nose because there is always the risk of intervention on the other side."

Overall, EM investors struggle to commit to market opportunities The wild......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  2. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  3. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  4. Fund Profile - The hedge fund that couldn't stay open long enough for a big payday[more]

    From Bloomberg.com: Toby Dodson waited six months for his bet against a fragile Portuguese bank to pay off. But before the reckoning, word came down from his hedge fund bosses at Achievement Asset Management in Chicago: get ready to clear out your desk and unwind your trades, we’re shutting down. Th

  5. Opalesque Exclusive: South Africa’s equity-centric hedge funds survive rough April in the black[more]

    Komfie Manalo, Opalesque Asia: Hedge funds serviced by Peregrine Holdings’ unit Peregrine Capital performed fairly well in April. The consecutive gains in March and April meant another step closer towards negating the cumulative losses sustai